LAW.coLAW.co

Israel Brilliant vs. George Samelas

Massachusetts Supreme Judicial Court1915-05-21
221 Mass. 302

Summary

Holding. The decree awarding the broker his commission is affirmed. A broker earns his commission when he produces a customer who is able, ready, and willing to execute the transaction for which he was hired, even if the principal later refuses to proceed or disputes terms.

A real estate broker sought to enforce his commission by reaching the defendant's interest in a mortgage through an equity proceeding. The broker had been hired to find a buyer or exchange partner for the defendant's property in East Boston. The broker introduced the defendant to Merkelson, who owned property in Revere, and the parties negotiated an exchange agreement. Although the parties disagreed about the loan amount to be placed on the Revere property, Merkelson secured a mortgage consistent with the broker's understanding and agreed to proceed. The defendant refused to complete the exchange and instead sold the property to a third party.

The trial judge found that the broker had earned his commission because he had procured a willing and able exchange partner, regardless of the disagreement over loan terms or the defendant's subsequent refusal to complete the transaction. The court affirmed, holding that a broker's primary obligation is to find a customer who is able, ready, and willing to transact business on the agreed general terms. The broker need not participate in finalizing the contract or ensure that every detail is resolved exactly as he understood it.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a real estate broker earns commission when the principal refuses to complete a transaction after a willing buyer is found
  • Whether a disagreement between parties about a specific loan amount defeats the broker's claim when a loan within the disputed range is secured
  • Standard of review for findings of fact made by a trial judge in equity proceedings

Procedural posture

The plaintiff appealed from a decree entered in his favor by the Superior Court judge sitting in equity, seeking to enforce his commission through an equitable proceeding to reach the defendant's mortgage interest.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Carroll, J.

This is a bill in equity to reach and apply to the satisfaction of the plaintiff’s claim, the defendant’s interest in a certain mortgage. R. L. c. 159, § 3, cl. 7. The defendant placed his property in the hands of the plaintiff for the purpose of sale or exchange, and agreed to pay the plaintiff a commission if he procured a customer to whom the defendant could sell or exchange his property. One Merkelson owned property in Revere, and the plaintiff brought the defendant and Merkelson together. At an interview in March, 1914, all the terms of the agreement for the exchange of the Revere property and the property of the defendant in East Boston were completed, except the placing of a loan upon the property in Revere, the plaintiff and his witness contending that the loan was to be for the sum of $14,000 for five years, and the defendant contending it was to be $15,000 for five years. Merkelson did secure a mortgage for $14,000 for five years and the defendant was notified of this fact but refused to make the exchange on the terms agreed to, and later sold the property to one Rebecca Cohen, taking from her a mortgage, the interest of the defendant in which the plaintiff seeks to reach and apply by this bill in equity.

The judge of the Superior Court * found that the plaintiff had earned his commission and a decree has been entered in his favor. On an appeal from such a decree, where the witnesses were seen and heard by the judge sitting in equity, his decision will not be disturbed unless it is clearly wrong. Dickinson v. Todd, 172 Mass. 183. S. K. Edwards Hall Co. v. Dresser, 168 Mass. 136.

It was undisputed that the plaintiff was hired to procure a customer, either to buy the property of the defendant or to exchange other property therefor. It was practically admitted that Merkelson, through the efforts of the plaintiff, entered into an agreement with the defendant. The question of the amount of the mortgage, the finality of the agreement of the parties and all the facts in the case were questions for the judge to decide, and his findings ought not to be reversed. There was ample evidence that the plaintiff found a customer who was able, ready and willing to make the exchange, and that was what he was employed to do.

We are unable to distinguish the case at bar from the case of Fitzpatrick v. Gilson, 176 Mass. 477, where the principle is clearly stated in this language: “When a broker has found a customer for that for which his principal has employed him to find a customer, the broker has performed his duty and has earned his commission, or, as the proposition is usually stated, if the person produced by the broker is able, ready, and willing to buy, sell, or lend, as the case may be, the broker’s commission is earned.” See also Munroe v. Taylor, 191 Mass. 483; Taylor v. Schofield, 191 Mass. 1; Boardman v. Hanks, 185 Mass. 555.

The rule established in Fitzpatrick v. Gilson is not disturbed by anything decided in Quinn v. Burton, 188 Mass. 466, where the supposed customer never agreed to make an exchange, or in Clark v. Bonner, 217 Mass. 201, where it was a question of fact whether the purchaser was ready to exchange or the parties ever agreed on any terms.

* Jenney, J.

S. Carver, for the defendant.

J. H. Blanchard, (H. C. Blanchard with him,) for the plaintiff.

It was not necessary for the plaintiff to take part in making the final contract of exchange. Willard, v. Wright, 203 Mass. 406.

Decree affirmed.